Underdog Raises Series B Funding With $485M Valuation
[BROOKLYN, July 26, 2022] – Underdog, the fastest growing paid fantasy sports company ever, today announced a Series B round of fundraising. The round, which includes funds and accounts managed by BlackRock (BlackRock) as well as Acies Investment, totals $35M and values the company at $485M. Over the next year, Underdog plans to build innovative licensed sports betting products, hire over one hundred new employees, and continue to lead the industry in daily fantasy innovation.
BlackRock and Acies Investment join existing investors Mark Cuban, Kevin Durant, Trae Young, Odell Beckham Jr., Breon Corcoran (ex-CEO Paddy Power Betfair/Flutter), Mitch Garber, Eilers & Krejcik, Liontree Partners, Kevin Carter, Mark Pincus (founder of Zynga), SV Angel, The Chainsmokers, Kygo, Steve Aoki, Nas, Future and many more.
“While the typical sportsbook is spending over $500 to acquire a customer, Underdog is bringing in new users for a fraction of that. Underdog’s product is leading to competitive advantages as Underdog’s customer acquisition and retention success is best in class” said Chris Grove from Acies Investments, who invested alongside BlackRock in the round. “Underdog’s success is driven by the company’s focus on building new, innovative games and delivering amazing customer experiences. As the company moves into licensed sports betting, I believe that the unique focus on product and experience will reshape the industry.”
In just over two years, Underdog has quickly acquired valuable users, and recently launched a $10M season-long NFL Best Ball tournament, which is the largest season-long fantasy prize pool ever.
“Since the start of Underdog we’ve believed that building quality products and putting customers first is a winning recipe. We’re excited to continue to innovate and build new experiences from the ground up in fantasy, sports betting, and adjacent spaces,” said Jeremy Levine, President and Chairman of Underdog. “This funding round gives us the fire power to continue to build, and build we will. We’re thrilled that funds and accounts managed by BlackRock are participating in our Series B as we continue towards our vision. Our players, and players of the future, are going to be delighted by the experiences they’ll be able to enjoy exclusively on the Underdog platforms. ”